I recently had a conversation with an agent who was so proud of the number of sales she produced in the last few months. “So how did you do it?” I asked. Her proud response? “No other builder is building for less.” Although I shared in her excitement about the sales, my reaction to the reason was anything but excited. I wondered if one really is a “salesperson” when selling isn’t actually involved.
This agent is actually very good at what she does and has sold product at higher price points but it did get me consciously thinking about builder market position. Low cost leader is definitely one position to take and it will work very well at some communities but there is only room for one at the bottom so how does everyone else compete?
Regardless of how often pricing questions come up, price is not the final consideration. Mercedes, Tiffany, Coach, iPhones, and every other luxury item would have died a quick death if that was the case. Even our new home building industry would have a different landscape. Consider that of the top 20 builders mentioned in Builder magazine for 2010, 80% have some (or all) of their business dedicated to move-up or luxury homes. If affordability was the most important factor, surely this would have been reflected in the results during such a trying year.
So what ARE buyers looking for if it isn’t price? Listen to your visitors and they will tell you. A better living situation is the primary concern. Why this area? Why now? Why you? I have never heard a prospect say “Because I heard you were the cheapest area and cheapest builder.” Instead you are likely to hear the very reasons you are NOT “cheap”.
Once you know why they are in your office, reinforcing their great decision is the next step. “Our Home Owners felt the same way.” or “We hear that often.” are great comfort statements. Sometimes it is hard for us to remember that the average buyer needs LOTS of help justifying their decisions. We do this every day – customers don’t – and they are the ones who are facing family and friends with this news.
So while comfort will help calm their nerves, information will help them with the scrutiny they will receive at home. Know WHY you are NOT the low cost leader. Walk the homes with Purchasing & Construction, visit local schools, and interview neighbors. Give the Buyers ammunition to justify their buying decision to themselves and to the people in their lives.
Most people don’t have pictures of Wal-Mart purchases on their desk. They will, however, brag about exciting purchases. Make sure YOUR experience is something to brag about and pricing will not be an issue.
By Michelle Glover, Copyright 2011
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